Amidst the ongoing hostile crypto market, Stacks (STX) price took support around the $1 mark. It made a double-bottom formation there.

Traded inside a declining channel, the Stacks crypto price steeply declined and dropped over 65% in the last three months. The ongoing price action projects the consistent selling pressure from the supply zone and redirects a short-term downtrend.

How is Stacks (STX) Doing?

At press time, the STX was trading at $1.38 with an intraday surge of 8.36%. It reflected a strong pullback on the chart.

The pair of STX/BTC is at 0.0000244 BTC, and the market cap is $2.04 Billion. Analysts are neutral and suggest that STX may recoup the gains and can trigger a reversal ahead.

Stacks Investors Look in Dilemma: Can STX Revive From Here?

The daily chart setup of the Stacks token projected a sustained downtrend. Moreover, the token tumbled to its bottom mark of $1.20.

Notably, the trend has been bearish, and any bounce was quickly sold out. This led the token to hover below the key moving averages.

The RSI curve bounced from the oversold region, had a reading of 34, and noted bearish projections.

Likewise, the MACD indicator indicated that the token gained traction and witnessed a bounce. However, the oscillators still guided the negative outlook.

@WorldOfCharts1, in his tweet, mentioned that STX looks good here and can see a sharp bullish reversal ahead.

Despite the market volatility, the token has gained traction and is ready to revisit the $2 mark ahead.

Total Value Locked (TVL) Overview

Amidst the price decline, the Total Value Locked (TVL) of Stacks crypto saw a notable drop. It witnessed a decrease in investors’ confidence.

TVL Data | Source: DefiLlama

When writing, the TVL was valued at $78.99 Million with a 24-hour trading volume of $93.78 Million. The token’s liquidity data witnessed a minor drop due to the market’s bearish setup.

Futures Open Interest Saw Short Covering Data

Fueled by the market recovery, the bears have done their work. They have begun to cover their positions in the early hours of the intraday session, resulting in a price uptick.

Open Interest Data | Source: Coinglass

The Futures Open Interest (OI) data noted a drop of over 1.57% to $36.45 Million. This revealed short covering activity in the past 24 hours.

The market situation still favored the bears because the STX price was below the key moving averages. Yet the Bulls have grabbed a tight defense around the $1 mark.

This is good for the smart investors who bought STX just around the demand zone of $1. The Bulls have made a double-bottom pattern and are on the verge of shooting up.

However, there is still a chance that bulls will break the immediate resistance level of $1.50 to extend the bullish reversal. Undoubtedly, the token was still hovering in a short-term correction phase and continued to form the lower low swings.

Thus, if the bulls maintain the bullish momentum, the token may reach $1.50, followed by the $1.70 mark. On the contrary, if the token fails to sustain gains around the $1.20 mark, it may breach the $1 mark. It can dive toward the low of $0.950 ahead.